A call option is an agreement that gives you the right to buy stocks, bonds, commodities, or other securities at a specific price up to a defined expiration date. Definition and Examples of a Call Option A call option is a contract between two parties that gives the call’s buyer the ...
A covered call is an options strategy designed to generate income on stocks you own—and don't expect to rise in price anytime soon. Here’s what you should know.
Building an investment portfolio may require personalization and finesse, but it can also be ultra-simple.
When you face a margin call, you can respond by selling securities to meet the maintenance margin requirement or by adding cash to your account. If you don’t do either, your brokerage can sell your investments without your permission to pay off your debt. The broker can even do so withou...
A cash out refinance is when you refinance your mortgage and tap into your home equity to take out a new home loan for more money than what you currently owe and receive the difference in cash.
Withdrawing from savings where the penalty may be smaller than the cash advance fee, such as certificates of deposit (CDs) Liquidate investments such as stocks and mutual funds Borrowing against major assets such as a 401(k) or home equity ...
Real assets can provide a hedge against stock market volatility. The value of real assets is often more stable than stocks and bonds, and generally appreciates over time. This can offer protection and smooth returns during an economic downturn. However, as investors saw in the 2008 financial cri...
Like traditional savings accounts, HYSAs typically allow you to access cash when you need it, sometimes with a free ATM card. And like a traditional account, your HYSA is federally insured by either the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCU...
The Securities Investor Protection Corporation (SIPC) is a nonprofit organization that provides coverage to investors in case their brokerage firm faces financial difficulties or goes bankrupt. The SIPC safeguards customers' assets, including cash and securities like stocks and bonds, held within a broke...
Equity options are derived from equity securities, like stocks and exchange-traded funds (ETFs).2Investors and traders can use equity options to take a long or short position in a stock without actually buying or shorting the stock. This is advantageous because taking a position with options all...